AUTHORIZED USER FOR 1ST CC OR NO?

Anonymous · ‎05-05-2015

Ok, so although I'm embarrassed to say it, I'm 28 and finally cleaning up my credit report. I have worked really hard to get my report clean and am now just waiting for all my pfd's to actually honor their end and delete the tradeline. I know I need some revolving tradeline accounts (CC), but I am scared to apply now and won't until my credit report is spotless. Sad to say I attempted to get a secured CC 2 years ago and was declined. (Felt so demoralizing). My credit report isn't as bad as it was then but I just still want to wait until its spotless so I dont have any unwarranted hard inquiries on there. Now to my question:

While I'm waiting for my negatives to be removed (should be less than 30 to 60 days), should I become an authorized user on my mothers discover card? It will end up being my first CC tradeline so this is why im confused. Should I wait, and first get my own CC so I can get the point increase for having my first CC? Usually I would advise anyone else to do this as long as the CC holder's utilization is below 30% and it has never been late, but in my situation I dont know if it will help me or hurt me since it will be my first CC tradeline. I'm thinking it will help with the factor of revolving credit history if they would actually post previous payments, but I may be wrong. I'm smacking myself since I know I inevitably should have 3 cards to help my fico score but I dont want to rush and get too many hard pulls at once. I also know that I should have already had a revolving CC on my file a long time ago since the average age is also factored.

Her credit limit is (10k on that card) she has it at about 30% uti. <---- not what im worried about though.

A little info on what is on my credit report (Positive)

-Car loan (14k paid off/ never late

-Aarons Furniture finance ($4100 paid off never late)

-(2) tradelines for jewerly (paid off/never late)

*Now the ones still active*

Student loan (still paying 3yrs old)

Student loan (Still paying 3 yrs old)

Thanks in advance for any suggestion!!

Anonymous · ‎05-05-2015

I'm not an advocate of the whole "AU thing". IMO the only time it should be considered is if you are having difficulty being approved for a secured card.

I would also advise not to be fearful of "hard inquirys". Many people seem to think these are as valuable as willy wonkas golden tickets. As long as you are not in double digits in the last year, and don't do multiple apps each week, an inquiry is NOT going to hurt you.

Go to the Capital One website and check their prequalifier. If it tells you you're qualified for the Secured card, go ahead and app, sooner the better. Too many poeple make the mistake of waiting to establish their starter accounts when rebuilding - all that does is delay your rebuild needlessly.

Anonymous · ‎05-05-2015

What are your FICO scores? If they are fair or good I would get your own card. Don't have much experiance with AU and my wife just added me as a AU on hers. Good advance to check and see if you are preapproved for any cards.

Anonymous · ‎05-05-2015

I see AU's as convienent when you're married. Otherwise, I would get my own card. Secured or not. It will look much better on your report and you're in control. Try Cap One QS. Even if it's 200.00, you're foot is in the door.

gdale6 · ‎05-05-2015

Forget about delaying get your 3 open bankcards ASAP even if they have to be secured. I would not go the AU route its better to do it on your own

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/Secured-Cards-Database/td-p/3846302

Anonymous · ‎05-05-2015

Sorry, got a bit busy at work. Thank you guys for responding and for your advice. My ficos are

Experian : 583

Equifax: 604

Trans: 578

Now I'm waiting for all my negatives to be deleted which should happen pretty soon. These include:

-1 CC charge off (which should have the most impact due to UTI and being CO).

-2 Medical collections

- 2 utility collections

- 1 cellular collection

I wanted to wait until the CC Charge off was deleted before I applied for any cards. Unless you guys think otherwise? I'm just a bit scared to apply for one now since I got declined with secured Cap 1 about 2 years ago. (Granted my report was much worse then, but with 2 charge off's still showing and one being a CC I didn't want to take the chance until it was deleted , which willl be soon)

Anonymous · ‎05-05-2015

@Anonymous wrote:
Sorry, got a bit busy at work. Thank you guys for responding and for your advice. My ficos are
Experian : 583
Equifax: 604
Trans: 578

Now I'm waiting for all my negatives to be deleted which should happen pretty soon. These include:
-1 CC charge off (which should have the most impact due to UTI and being CO).
-2 Medical collections
- 2 utility collections
- 1 cellular collection

I wanted to wait until the CC Charge off was deleted before I applied for any cards. Unless you guys think otherwise? I'm just a bit scared to apply for one now since I got declined with secured Cap 1 about 2 years ago. (Granted my report was much worse then, but with 2 charge off's still showing and one being a CC I didn't want to take the chance until it was deleted , which willl be soon)

As already mentioned above, go to Capital One website and see if you are prequalified for anything. You may be able to get a secured card or maybe even a low limit unsecured, either way it doesn't matter for credit building purposes. I have read ok things about OpenSky secured cards, maybe check them out. Don't be afraid to use some inquiries, without doing so, you will go no where. I would stay away from the AU idea, it is clear that you are very concerned about your credit, you don't want to have hardship with your mom if she decides to utilize more of her available credit and doing it on your own will make it much more worthwhile in the end. If the CO is going to fall off soon then maybe wait before you apply (under 1 month) if not give it a go now. I actually have a charge off on my reports from Capital One right now and they have given me 2 cards over the past couple months.